The most wonderful time of the year… tax season. That title probably belongs to Christmas, but believe it or not, some people actually enjoy filing their taxes, often because they’re expecting a refund. Others, however, feel the exact opposite; knowing they may owe money to the IRS can feel daunting. As tax season kicks off and paperwork begins to arrive, now is the perfect time to get organized, reduce stress, and stay aware of any changes that could impact your return.
Documents you should begin to receive now include W-2s, 1099s, and forms for bank interest. If you invest, be on the lookout for your 1099 composite tax documents to arrive; these often come in late February. If you keep your own records for investment sales, be sure to gather those to compare with your statements. Homeowners should locate mortgage interest statements and property tax statements. If you made charitable donations in 2025, be sure to include documentation of those. It can also help to review your prior-year return and documents used so you know what needs to be obtained and gathered. As these documents arrive over the next few weeks, store them in a safe, organized place. That might be a paper file labeled “2025 Tax Documents” or a digital folder on your computer. What matters most is choosing a system that works for you. Staying organized now can significantly reduce stress as April 15 approaches.
In 2025, several tax changes took place, so you will want to be aware of changes that may affect your 2025 return. The One Big Beautiful Bill Act (OBBBA) introduced updates that may affect many taxpayers. An increased standard deduction and an additional $6,000 senior deduction for individuals age 65 and older could positively impact a wide range of returns, depending on your income bracket.
Other annual adjustments to keep in mind include increases in retirement contribution limits and inflation-adjusted tax brackets. If you have side income or engage with digital assets, be aware that the rules surrounding them continue to evolve. Even if your personal finances haven’t changed, tax rules often do, so being informed can be beneficial.
As you prepare to submit your tax return, take time to carefully review everything. Most tax mistakes aren’t complex; they’re usually simple oversights. Double-check that your name is spelled correctly, your Social Security number is accurate, and all required forms are included. Small errors can cause delays and unnecessary stress. Be sure to review and/or verify your direct deposit information with your banking institution so that, if you are receiving a refund, it is not delayed. Retirees taking required minimum distributions (RMDs) should confirm that distributions were satisfied for the year and that appropriate taxes were withheld from Social Security and pension income. An unexpected tax bill due to insufficient withholding can be frustrating. Don’t wait until the last minute, when everything feels urgent. Thoughtful review and small preparation now can save you hours of stress later.